3 stocks I bought in June and why I’m so excited about them

Over the past few months, I have bought more stocks than ever before in a three month period. And I’m not just talking about the early days of the pandemic – there is still some great long-term business to be found and I haven’t been shy about putting more money to work.

With that in mind, here’s why I added even more to my posts in Empire State Real Estate Trust (NYSE: ESRT) and Boston Omaha (NASDAQ: BOMN) and why I finally decided to leave my comfort zone as a value investor and pull the trigger The commercial counter (NASDAQ: TTD).

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Emblematic assets and an opportunity to create long-term value

I’m a huge fan of real estate stocks, and there isn’t one that I bought more during the pandemic than Empire State Realty Trust. The company is a real estate investment trust that owns and operates office buildings in the New York City area, including the famous Empire State Building.

Empire State has been in my portfolio for some time, but after being cut in half in 2020, this could now be a particularly strong buying opportunity.

First of all, the bad. New York City is the epicenter of the coronavirus outbreak in the United States, so the stock is certainly down for a reason. The highly profitable Empire State Building observatory remains closed, and 20% and 25% of tenants have not paid rent for April and May, respectively. And, the office market in New York was experiencing a downturn before the pandemic.

However, there is a huge growth opportunity for long-term patient investors. Empire State has $ 1 billion in cash, less leverage than its peers, and recently hired an investment director for the first time in company history to put the company to work. company money. In a recent presentation, CEO Anthony Malkin said he sees an 18-24 month window of opportunity in the New York office market, and the company appears to want to take advantage of it.

I’ve had my eye on this one for a while …

I had been considering adding The Trade Desk to my portfolio for some time and finally decided to pull the trigger recently.

The company operates a leading programmatic advertising platform, allowing advertisers to create and manage advertising campaigns, and optimize them across multiple formats, such as mobile, search, audio or streaming media, for n ‘ to name a few. There is a clear change underway in the advertising industry, and The Trade Desk is likely to be one of the biggest beneficiaries.

In less than a decade, The Trade Desk has grown from nothing to a platform where over $ 3 billion in advertising was spent last year, and the growth continues to be impressive. Last year, The Trade Desk’s revenue climbed almost 40% from 2018 levels and with a global ad spend market estimated at $ 725 billion, the business may just be getting started.

A long-term growth game on the ground floor

Boston Omaha is often compared to an early stage Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), and it’s not hard to see why. Its business model consists of acquiring treasury activities, in particular insurance companies and display advertising activities, which will then generate cash flows that can be reinvested in complementary acquisitions or in equity securities. Additionally, co-CEO Alex Rozek just happens to be Warren Buffett’s great-nephew (although to be clear, Buffett has nothing to do with the company).

Unlike Berkshire Hathaway, however, Boston Omaha is very small. By market cap, this is about 0.1% of the size of Berkshire. This is both good and bad. This means that Boston Omaha is an untested business and therefore more of a speculative investment. On the flip side, the small size of the company means Boston Omaha has plenty of growth opportunities and doesn’t need to focus on massive acquisitions to get things moving for investors.

Now, I am not investing in Boston Omaha with the expectation that it will be the “next” Berkshire Hathaway. But this is the opportunity to step into the ground floor of a proven business model that could produce fantastic returns in the long run.

I bought all this for the long term

I bought all three as long term investments. The COVID-19 pandemic is not yet over and the stock market will almost certainly be more volatile than usual for the duration, so don’t expect these stocks (or any others) to rise in a straight line. However, all three of these companies are great companies and I am delighted to see them grow over the next decade and beyond.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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